Small Business Lending Fraud Prevention Act
In committeeSmall Business Lending Fraud Prevention Act This bill requires Small Business Administration (SBA) employees who participate in the origination, review, or approval of SBA loans to certify in writing prior to such participation that the employee does not have any conflict of interest with respect to the loan, will disclose any such conflict of interest arising after the certification is made, and understands the requirements with respect to conflicts of interest applicable SBA employees. Under current law, federal employees must disclose financial conflicts of interest with respect to a particular matter and recuse themselves from such matter (with limited exceptions upon authorization from the employee's agency designee). The SBA must issue regulations implementing the requirements of this bill.
Jul 13, 2026Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Passed
The Small Business Lending Fraud Prevention Act mandates that Small Business Administration employees certify they have no conflicts of interest when involved in loan processes. It requires the creation of regulations to enforce this certification process. The bill aims to enhance transparency and integrity in SBA loan administration.